It’s hard to know if you are doing well with B2B average sales cycle for SaaS. For example, how many days does it take on average for a deal to close? Factors like customer size and complexity can affect this number.
There are a few factors that can dramatically affect the average sales cycle for SaaS. The first is understanding what those variables might be.
What influences B2B SaaS sales cycles?
When it comes to the average sales cycle for SaaS, you have a very different approach when selling your product to enterprises versus small businesses. In the case of an enterprise customer, more work needs to be done before the sale can close because they are much more significant. Complex structures need approval from various departments within their company for them to purchase your solution. This B2B SaaS sales process takes longer than one with a smaller business since every time someone new becomes involved in this decision-making process, they must learn about what you offer.
In getting the average sales cycle for SaaS, it is not enough to have the marketing director on board with your product, and you will need to go through IT to prove that it is reliable and safe for their data. Then procurement, where they will compare your proposal against at least two others before finally going through finance so that you can be registered as a vendor. It isn’t easy.
The more expensive your product is, the longer it will take you to sell. Let’s say that you are selling a simple self-service tool and each month costs $5; there is a chance that someone will enter their credit card information without overthinking because something so cheap does not warrant overanalyzing.
To make a significant investment, you must be vetted by the company.
If your solution will cost more than $100k per year, then it’ll take longer for them to decide whether or not they want to invest in you. Click To Tweet
If you offer customers the option to pay for your product or service over a more extended period, such as an annual contract, it will take them more time to make their decision. HubSpot is one example; they only sell if you buy at least 12 months upfront, and many benefits come with this kind of business model, but it can be seen as an adoption barrier like anything else in sales.
It will take longer to close the deal when you are selling a complete solution. For example, if I am trying to sell an ERP that impacts many departments in the company versus just one department for email marketing software. It is crucial when closing deals that they have all of their questions answered and what benefits there may be with using your product or service.
When you’re only selling one product, it will be easier to close the deal because fewer people are involved in the SaaS sales process. This means less analysis and time spent.
If you’re not selling to an existing market with known and defined functionality, it will take longer for your product service to sell. That is because before they can see the benefits of using your solution, you have to prove that yours offers something new or better than what people are already familiar with.
If you’re selling something new, educating the market and showing them why your product is better than competitors will take time.
To be more specific, I would have to research what you are looking for. This post from Quora gives a rough idea of the salaries that people in sales make.
When it comes to the average sales cycle for SaaS, I can’t stress enough that these numbers are precise to the situation, so it’s essential to keep them in mind.
These are average sales cycles for SaaS from prospective customers who have expressed interest in buying. This is based on the prospect’s likelihood of purchasing, budgeting, and positive perception by the rep.
There are a lot of variables that go into getting a new customer.
It may only take one call to get you your next High Probability Opportunity, but it could also take 2 years before they come knocking on the door. Click To Tweet
That’s it for the average sales cycle for SaaS. Make sure to take down important details and apply them to your company.